Digital Asset Treasury Companies Face Significant Stock Declines Amid Crypto Market Volatility

According to PANews, digital asset treasury (DAT) companies listed in the United States and Canada have seen their stock prices drop by a median of 43% this year, contrasting with Bitcoin's approximate 6% decline since the beginning of the year. SharpLink, an Ethereum treasury company, has experienced an 86% decrease in its stock value from its peak, with its market capitalization now lower than the value of its digital token holdings. The company's stock is currently valued at about 0.9 times its Ethereum holdings. SharpLink previously shifted from its gaming business to issuing stock and purchasing Ethereum, causing its stock to surge over 2600% within days. However, compared to Greenlane, SharpLink remains relatively fortunate; Greenlane's stock has plummeted over 99% this year despite holding approximately $48 million in BERA crypto tokens. Additionally, Alt5 Sigma, a DAT company once supported by U.S. President Donald Trump's two sons, has seen its stock fall about 86% since its peak in June. Some DAT companies have managed to maintain a market capitalization above their underlying holdings' value, but most investors who bought near peak levels have incurred losses, with 70% of company stocks likely to end the year below their initial levels. The worst performers are those that avoided Bitcoin in favor of smaller, more volatile tokens. The volatility of these stocks is partly attributed to companies borrowing heavily to acquire cryptocurrencies. Meanwhile, lesser-known small DAT companies face dwindling opportunities to raise funds as cryptocurrency prices decline and investor enthusiasm wanes.